To help businesses during the Covid crisis the government buys 1 year zero coupon bonds at 100p from distressed companies: Which of these statements describes the government's strategy? The government is A. borrowing for 1 year at zero interest rates from the market to help distressed businesses. B. giving distressed companies interest free loans for a year. C. making a one-off donation to distressed businesses. D. investing in distressed companies.
To help businesses during the Covid crisis the government buys 1 year zero coupon bonds at 100p from distressed companies: Which of these statements describes the government's strategy? The government is A. borrowing for 1 year at zero interest rates from the market to help distressed businesses. B. giving distressed companies interest free loans for a year. C. making a one-off donation to distressed businesses. D. investing in distressed companies.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can you please help with the question in the picture attached? The answer should be only one and I’m quite confused. Thank you!
Transcribed Image Text:To help businesses during the Covid crisis the government
buys 1 year zero coupon bonds at 100p from distressed companies:
Which of these statements describes the government's strategy?
The government is
A. borrowing for 1 year at zero interest rates from the market to help
distressed businesses.
B.
giving distressed companies interest free loans for a year.
C.
making a one-off donation to distressed businesses.
D.
investing in distressed companies.
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